A proposal to reduce the mandatory advance payment for electricity by businesses from 100% to 50% was raised during an open dialogue between a government commission and entrepreneurs in Uzbekistan's Khorezm region.
The issue was raised by a representative of a company engaged in importing wheat from neighboring countries and producing flour. The entrepreneur said production had been suspended due to tax-related issues and the requirement to make full advance payments for electricity. According to the entrepreneur, the current system requires businesses to pay the full cost of electricity before consumption, limiting the availability of working capital.
"If electricity payments were made after the sale of the product or at the end of the month, that would be fine for us. Now, we have to make a 100% prepayment, which freezes our funds," the entrepreneur said.
Deputy Prime Minister Jamshid Khodjaev responded that the government commission could not change the advance payment system through its meeting protocol, as the issue would require a broader policy decision. Khodjaev noted that the government had previously considered similar measures for greenhouse farms. However, he said banks deposited the allocated funds as advance payments for electricity under the existing mechanism. The deputy prime minister confirmed that businesses are currently required to make advance payments before receiving electricity services.
During the discussion, the entrepreneur recalled that between February 2019 and July 2024 businesses were required to make only a 50% advance payment for electricity and proposed restoring that arrangement.
"This is also a proposal, so consider it, as difficulties are currently arising that are no worse than those encountered during the [COVID-19] pandemic. Make a proposal," Khodjaev said.
The proposal was raised for consideration during the dialogue, and no decision on changing the current prepayment system was announced.
